The loan between money lender and individuals is a credit solution that is not the responsibility of banks but must meet certain rules. Loans between individuals are a type of credit that allows lenders and borrowers to do without banks. It is perfectly legal but sometimes too little framed.

What is a personal loan?

The credit between individuals is concluded between a lender and a borrower who are not professionals of the banking field. The famous Singapore moneylender should be a person who has a savings surplus that he wants to grow; the borrower wants to get a loan without going through the banking system. The loan works in the same way as conventional loans: a capital is made available to the borrower; he will have to repay this sum with possible interest.

How can we get one?

To obtain a loan between individuals, you can either go through someone you know, or find someone you do not know, but who is a famous Singapore licensed money lender. Some online platforms allow you to connect people who wish to enter into these credits.

Warning: most often these sites offer no protection to individuals who lend or borrow money. In any case, a loan agreement must be entered into; even if you know who is lending or borrowing and even if it is a zero rate loan.

The formalities to respect to conclude a loan between individuals

The law sets limits not to be exceeded to protect lenders and borrowers. If you are lending money to someone, you will not be able to do anything. Some information must be recorded in writing: it is not a legal obligation, but in case of problem, you will be able to refer to this contract.Note that the fixed interest rate can never exceed that of usury.

Once you have taken this into account and to formalize the loan between individuals, it will be necessary to establish an administrative file including basic information (name, address, etc.) as well as elements concerning the financial capacity of the person who will take out this loan. Borrowing (photocopies of payroll, indication of project, etc.). The famous Singapore moneylender will be perfect here.

The scams to avoid when borrowing from a particular

Some people are seduced by offers too enticing. If on a platform that connects lenders and borrowers or via an ad site you find someone who agrees to lend you without asking your bank history and your situation or offers an exceptionally low rate, there is eel under rock.

A frequent scam is to offer very advantageous terms for the borrower who is then eager to want to close the deal. At that time, the lender asks him to pay a processing fee or advance a payment for any other reason.To avoid problems, just one tip: write a proper loan agreement.